I agree, however, a good landlord who maintains their property and promptly resolves issues will have to invest an element of time and money into the process.
a good landlord [is one] who maintains their property
That job exists - they are called maintenance workers: plumbers, electricians, roofers, handymen…
What makes a landlord a landlord - and not a handyman - is the ownership of property and extraction of rent for its use. It is definitionally not the labor involved in maintaining it.
If landlords want to be paid for maintaining properties they can get jobs as a maintenance workers.
The value of a landlord in theory is that they rent at a rate lower than what the mortgage would be, since the renter isn’t going to own the property at the end of it. And in turn the renter is wanting short term accommodation. The issue is various conditions have led to home prices always going up.
Exactly. Profit actually middies/lowers intrinsic value added since the main driver is purely financial, not actual irl. And you can make a (steady) profit on/with things that don’t add value.
Depends on the case, but for an average house the cost of building one. How the location affects pricing wouldn’t change (land/space is still limited & some places offer things that others dont).
Its just that without rent invectives more houses would again be privately owned simply because less investment capital would bother with it & push the sectors profitability up.
Ah I see, yeah I would disagree there is such a thing as intrinsic value.
Its just that without rent invectives more houses would again be privately owned simply because less investment capital would bother with it
I don’t know if I agree with that, because of current governments goals of keeping house prices ever rising, land, even empty, would be useful for risk management. It also may lead to that land being used for very short term housing, aka AirBnB. It could also lead to psuedorent type arrangements where banks offer loans with much lower downpayments, but with extremely long terms.
What government has an interest in rising housing prices? Isn’t their job the opposite of that usually? Im not familiar with that.
And regulators/government should prohibit such predatory practises as long loans (no central bank would even allow that atm anyway, not under Basel). Basically my point is that housing, healthcare, public infrastructure, etc should be non-profit imo (so, no dividends/profit payouts, only for r&d or lowering price points and profit sharing to clients).
What government has an interest in rising housing prices? Isn’t their job the opposite of that usually? Im not familiar with that.
A government who for decades has encouraged home ownership as the safest way of building wealth. A government who a massive number od their constituents are home owners.
And regulators/government should prohibit such predatory practises
Are they predatory? How else can someone live if they can’t afford a down payment and can’t rent?
Basically my point is that housing, healthcare, public infrastructure, etc should be non-profit imo (so, no dividends/profit payouts, only for r&d or lowering price points and profit sharing to clients).
FTFY
Value is added regardless of whether the labor was freely exchanged.
That said: rent isn’t a result of any labor at all
I agree, however, a good landlord who maintains their property and promptly resolves issues will have to invest an element of time and money into the process.
That being said, fuck landlords in general.
That job exists - they are called maintenance workers: plumbers, electricians, roofers, handymen…
What makes a landlord a landlord - and not a handyman - is the ownership of property and extraction of rent for its use. It is definitionally not the labor involved in maintaining it.
If landlords want to be paid for maintaining properties they can get jobs as a maintenance workers.
The value of a landlord in theory is that they rent at a rate lower than what the mortgage would be, since the renter isn’t going to own the property at the end of it. And in turn the renter is wanting short term accommodation. The issue is various conditions have led to home prices always going up.
I don’t mean to sound rude, but this might as well be fan fiction.
Exactly. Profit actually middies/lowers intrinsic value added since the main driver is purely financial, not actual irl. And you can make a (steady) profit on/with things that don’t add value.
What is intrinsic value?
Depends on the case, but for an average house the cost of building one. How the location affects pricing wouldn’t change (land/space is still limited & some places offer things that others dont).
Its just that without rent invectives more houses would again be privately owned simply because less investment capital would bother with it & push the sectors profitability up.
Edit: if I misunderstood your question --> wiki/Intrinsic_value_(finance), wiki/Intrinsic_theory_of_value, wiki/Intrinsic_value_(ethics)
Ah I see, yeah I would disagree there is such a thing as intrinsic value.
I don’t know if I agree with that, because of current governments goals of keeping house prices ever rising, land, even empty, would be useful for risk management. It also may lead to that land being used for very short term housing, aka AirBnB. It could also lead to psuedorent type arrangements where banks offer loans with much lower downpayments, but with extremely long terms.
What government has an interest in rising housing prices? Isn’t their job the opposite of that usually? Im not familiar with that.
And regulators/government should prohibit such predatory practises as long loans (no central bank would even allow that atm anyway, not under Basel). Basically my point is that housing, healthcare, public infrastructure, etc should be non-profit imo (so, no dividends/profit payouts, only for r&d or lowering price points and profit sharing to clients).
A government who for decades has encouraged home ownership as the safest way of building wealth. A government who a massive number od their constituents are home owners.
Are they predatory? How else can someone live if they can’t afford a down payment and can’t rent?
I understand